Click to play videoNew Delhi: The father figure of the Indian economy is rising to the challenge finally and giving his healing touch. The politician in Prime Minister Manmohan Singh is trying to reach out in election season, saying that both global meltdown and price rise are passing phenomena.
"India has faced challenges in the past and has overcome them. We have the strength to overcome the current challenges too. Wholesale price index is improving and is expected to improve further in the next two months," he said.
In addition to a promise of controlling inflation and thus bringing down prices, this is what the Government done to improve market sentiment:
- To get over the liquidity crunch, a total of Rs 1 lakh crore have been infused into the market.
- This means industry has more money for completing projects and therefore lesser job cuts.
- Repo rates - that's the rate at which banks borrow from the reserve bank - have been cut by one per cent. So interest rates could come down.
But this doesnt mean the crisis is over.
"We must be prepared for an economic slowdown," he cautioned.
It's a slew of assurances coming from a Government fast realising that the aam aadmi (common man) doesn't reside just in the villages. The number of urban constituencies feeling the pinch has gone up. The middle class voter living in urban India is jittery.
From internal security to a global meltdown, the Prime Minister is moving from one crisis to another. And now the man who started the economic reforms in the '90s has to wave that magic wand once again, especially in an election year to get the Government out of a crisis.
(With inputs from Meetu Jain in New Delhi)
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